The US, the IMF and the World Bank Have Warned Iraq Over Proposed 2023 Budget

 

Militias backed by Iran are exploiting the Iraqi government's revenue to secure their grip on power. The first draft budget of the Coordination Framework–led administration is the largest ever in Iraq: they suggested spending $152 billion, a hike of about 50% from the original budget for 2021. They have made it their mission to keep this amount of funding available through to the October 2025 elections.

The United States, the International Monetary Fund (IMF), and the World Bank have all recommended that Iraq reduce its public sector, but their warnings have been ignored. The Coordination Framework—which proposes creating at least 701,000 new government jobs in a single year—is attempting to appease both political factions and citizens with unsustainable spending programs. For instance, the PMF is projected to expand from 122,000 to 238,000 paid members; this means an increase of 95 percent in government-funded militia members in a country that is currently experiencing some of its lowest levels of violence in decades. By overburdening the state with salary obligations, the Coordination Framework could be unintentionally stirring up potential trouble in the future.

Disregarding the warnings from entities like the United States, IMF, and World Bank, Iraq is recklessly growing its public sector. There are plans to create 701,000 new government positions – an expansion of 17 percent in one year. The PMF is expected to raise from 122,000 to 238,000 funded personnel – a 95 percent surge in the number of state-funded combatants in a time when violence is at its lowest for two decades. This idea of purchasing favor with this excessive expenditure will set the stage for upcoming instability.